subject: Free Debt Reduction Tips - How to Legally Avoid Paying Unsecured Debts in Full [print this page] Free Debt Reduction Tips - How to Legally Avoid Paying Unsecured Debts in Full
This article intends to give you some free debt reduction tips and also intends to explain how to legally avoid paying unsecured debts in full. Ever since the American economy faced the problem of recession, the consumers faced the problem of unmanageable debts because they lost their jobs and were unable to repay the creditors. This forced them to file for bankruptcy which definitely caused other financial problems for them in the future. This forced people to look for alternative methods of debt elimination which can negate the negative impacts caused by recession. The method that came to rescue is the method of debt settlement. This method is rapidly gaining popularity and thereby replacing the traditional method of bankruptcy. But how to legally avoid paying unsecured debts in full?
The internal dynamics: The process of settlement requires a consumer to have a minimum loan of $10,000. If not more, this amount cannot be less than that. The consumer also needs to ensure that the loan is not scattered over a number of cards! If the loan is scattered, the consumer needs to consolidate the same. Once these two conditions are satisfied, the consumer must hire a professional settlement company. A professional company understands the banking system very well and therefore can use the loopholes present in the system to get a good deal for the consumer.
The consumer will be advised by the professional negotiator to stop paying the creditor in order to prove that the consumer is in financial trouble. The creditor will wait for 3-4 months once the payment flow stops from the consumer's end. The creditor will then sell off the debt to a collection agency for 20-30 cents on the dollar. The negotiator knows exactly when this happens and then contacts the creditor with a better deal of 40-50 cents on the dollar.
The creditor finds this new deal to be more profitable because it means 100% ROI for the collection agency and will thereby eliminate at least 50% of the debt that the consumer has. This is how a consumer can legally avoid paying the unsecured debts in full.
There are many debt settlement companies out there and not all of them are legitimate. That's why it's so important for consumers to use debt relief networks. These networks offer free help to determine what the most appropriate debt relief option is for you. They will give you an unbiased opinion and point you in the right direction whether it is debt settlement or another option.
